Catalyst Bancorp(CLST) - 2023 Q3 - Quarterly Report

Financial Performance - The company reported net income of $170,000 for the three months ended September 30, 2023, compared to$135,000 for the same period in 2022, representing a 25.9% increase [164]. - For the nine months ended September 30, 2023, net income was $282,000, significantly up from$9,000 in the same period of 2022 [164]. - Total interest income increased by $437,000, or 21.5$2.5 million for the three months ended September 30, 2023, compared to the same period in 2022 [219]. - Net interest income was $2.0 million for the three months ended September 30, 2023, up$102,000, or 5.5%, from the same period in 2022 [223]. - Total interest income for the nine months ended September 30, 2023, increased by $1.1 million, or 19.5$7.1 million compared to the same period in 2022 [232]. - Net interest income was $5.8 million for the nine months ended September 30, 2023, up$410,000, or 7.5%, from the same period in 2022 [236]. - Non-interest income totaled $306,000 for the three months ended September 30, 2023, up$10,000, or 3.4%, compared to $296,000 for the same period in 2022 [226]. - Non-interest income totaled$917,000 for the nine months ended September 30, 2023, up $45,000, or 5.2$872,000 for the same period in 2022 [238]. Asset and Loan Management - As of September 30, 2023, total assets were $257.9 million, with total loans of$135.7 million and total deposits of $165.2 million [164]. - Total loans increased by$2.1 million, or 1.5%, to $135.7 million at September 30, 2023, compared to$133.6 million at December 31, 2022 [182]. - Total past due loans amounted to $2,638,000, with$1,473,000 past due 30-89 days and $127,000 past due over 90 days [85]. - Non-performing loans increased to$2.088 million at September 30, 2023, compared to $1.600 million at December 31, 2022 [193]. - Total non-accruing loans increased to$1,961,000 at September 30, 2023, up from $1,494,000 at December 31, 2022, representing a 31.1$2.0 million, or 1.50% of total loans, as of September 30, 2023, up from $1.8 million, or 1.35$126, or 0.1%, to $165.220 million at September 30, 2023, from$165.094 million at December 31, 2022 [198]. - Public fund deposits increased to $26.4 million, or 16.0$21.0 million, or 12.7% of total deposits, at December 31, 2022 [205]. - Shareholders' equity decreased to $82.2 million, or 31.9$88.5 million, or 33.6% of total assets, at December 31, 2022, a decline of 7.1% [208]. - Total uninsured deposits were approximately $45.2 million at September 30, 2023, compared to$43.4 million at December 31, 2022 [206]. Strategic Initiatives - The company’s business strategy has shifted to a relationship-based community bank model targeting small- to mid-sized businesses [163]. - The company aims to continue implementing its business strategies and capitalize on growth opportunities despite economic uncertainties [155]. - The company plans to focus on market expansion and new product development to enhance future performance [102]. Regulatory and Compliance - The Bank exceeded all regulatory capital requirements and was categorized as well-capitalized at September 30, 2023 [256]. - The company adopted ASC 326 on January 1, 2023, which changed the methodology for estimating credit losses on loans [169]. - Future changes in laws, regulations, or government policies may materially impact the company's financial condition and results of operations [165]. Investment and Securities - Net unrealized losses on available-for-sale securities totaled $12.8 million as of September 30, 2023, compared to$11.5 million at December 31, 2022 [174]. - Total investment securities decreased by $7.8 million, or 8.4$85.3 million at September 30, 2023, from $93.1 million at December 31, 2022 [195]. - The fair value of available-for-sale securities decreased to$71,808,000 as of September 30, 2023, from $79,602,000 on December 31, 2022, a decline of about 10% [130].